KeyBank Secures $20.3M for CIHA Complex in Spenard
The first phase of Ch’bala Corners in Spenard was built last fall.
KeyBank
The second phase of an affordable housing complex in Anchorage’s Spenard neighborhood has secured financing thanks to KeyBank Community Development Lending and Investment (CDLI). The branch of the Cleveland-based bank packaged $20.3 million for the construction of Ch’bala Corners II, to be managed by Cook Inlet Housing Authority (CIHA).
Sprucing Up Spenard
“Ch’bala” means “spruce tree” in the Dena’ina language. The first phase sprouted last fall at Spenard Road and 36th Avenue, kitty-corner from CIHA headquarters. Phase I includes three buildings: senior housing with nineteen apartments, an eight-plex garden-style building for families and individuals, and a twenty-one-unit multifamily building, for a total of forty-eight units.
Ch’bala Corners II is located one block away, at 36th Avenue and Dorbrandt Street. It consists of three eight-plexes, three four-plexes, and one duplex. Of the thirty-eight units, twenty-three are restricted to occupants who earn 50 percent of the median income for Anchorage, and fifteen units are restricted at 60 percent. Eight units are reserved for disabled households, and eight units are set aside for homeless households. Residents will have access to a variety of programs and services, provided by CIHA and local partners, that support health, wellness, community engagement, and financial self-sufficiency.
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April 2024
CDLI is providing $9 million in low-income housing tax credit equity, a $10 million construction loan, and a $1.3 million permanent loan to finance the new construction. KeyBanc Capital Markets (KBCM) also sold $10 million worth of tax-exempt bonds through a public offering, the proceeds of which will support the financing of the project.
Kortney Brown and Brett Sheehan of KeyBank CDLI structured the financing. Ila Afsharipour of KBCM Public Finance Group provided the bond underwriting.
“We are excited to work with Cook Inlet Housing Authority to invest in Ch’bala Corners II because it is community-based and serves the needs of our most vulnerable neighbors,” says Brown, senior relationship manager with KeyBank CDLI. “Cook Inlet Housing Authority’s ability to partner and collaborate with other agencies and providers is representative of how complex affordable housing projects can be successfully completed.”
Ch’bala Corners II also received support from the following: Municipality of Anchorage American Rescue Plan Act grant funds; Municipality of Anchorage HOME Investment Partnerships Program grant funds; State of Alaska Community Development Block Grant Program disaster relief funds; State of Alaska Supplemental Grants Program funds; Federal Home Loan Bank of Des Moines Affordable Housing Program grant funds; and US Department of Housing and Urban Development Indian Housing Block Grant funds.
Foundation for Families
A rendering shows the garden-style eight-plex planned for the second phase of Ch’bala Corners in Spenard.
Cook Inlet Housing Authority
“We are grateful for the financial support of KeyBank Community Development Lending and Investment and KeyBanc Capital Markets in the development of Ch’bala Corners II. Affordable housing financing is complex and multifaceted,” says CIHA President and CEO Gabe Layman. “We appreciate the professionals at KeyBank CDLI and KBCM for thoughtfully navigating this process with us, allowing for the addition of thirty-eight units of much-needed affordable housing in our community. Affordable housing is the foundation that helps families stabilize and thrive.”
According to the timeline for rolling completion, seven buildings are scheduled to be ready for occupants by the end of next summer.
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